Correlation Between Super Dragon and Cultural Investment
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Cultural Investment Holdings, you can compare the effects of market volatilities on Super Dragon and Cultural Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Super Dragon with a short position of Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Cultural Investment.
Diversification Opportunities for Super Dragon and Cultural Investment
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Super and Cultural is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment and Super Dragon is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Super Dragon Engineering Plastics are associated (or correlated) with Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Super Dragon i.e., Super Dragon and Cultural Investment go up and down completely randomly.
Pair Corralation between Super Dragon and Cultural Investment
Assuming the 90 days trading horizon Super Dragon is expected to generate 1.04 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Super Dragon Engineering Plastics is 1.07 times less risky than Cultural Investment. It trades about 0.03 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 220.00 in Cultural Investment Holdings on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Cultural Investment Holdings or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Cultural Investment Holdings
Performance |
| Timeline |
| Super Dragon Enginee |
| Cultural Investment |
Super Dragon and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Cultural Investment
The main advantage of trading using opposite Super Dragon and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon position performs unexpectedly, Cultural Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Super Dragon vs. Agricultural Bank of | Super Dragon vs. Industrial and Commercial | Super Dragon vs. Bank of China | Super Dragon vs. PetroChina Co Ltd |
| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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